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Natural Gas is Back #CH4

Although prices haven’t yet responded, soon — perhaps as early as December 2015 or early 2016 — we’ll see an intense boom for natural gas.

Along with new factories and plants, a convergence of new demand will create a bottleneck during crucial winter months.

This bottleneck stands to drain oversupply while boosting prices for natural gas and for shares of companies in the industry.

In December, the first shipments of LNG leave ports on the Gulf Coast headed for Asia and Europe, while the EPA plans to release its new “Clean Power Plan.”

The plan, according to Bloomberg, will “upend a century of electricity generation and distribution.”

This is already happening, as utilities attempt to preempt the rules. According to the EIA, for the first time since recordkeeping began, natural gas surpassed coal for electricity generation in April.

Coal suffers because of cheap natural gas and the new power plan regulations, which are designed to phase out coal as a source of electricity, ushering in natural gas and renewables.

Plus, with seasonal swings in demand, the winter will be a lucrative time for natural gas investors.

And, according to several news outlets, although not widely reported, many speculate that Saudi Arabia and OPEC will begin trimming oil production at the end of the summer in order to boost prices.

If this happens, expect the commodities slump — especially for oil and gas — to return to its bullish ways.